LAKEWOOD, CO / ACCESSWIRE / July 28, 2022 / Solera National Bancorp, Inc. (OTC PINK:SLRK) ("Company"), the holding company for Solera National Bank ("Bank"), a business-focused bank located in the Denver metropolitan area, today reported financial results for the three months and six months ended June 30, 2022. For the second quarter of 2022, net income was $5.1 million and $8.3 million year to date as of June 30, 2022.

2Q22 Financial Highlights

(Comparison to 2Q21 unless otherwise noted)

The Company had record pre-tax and pre-provision earnings of $6.3 million in the second quarter of 2022 compared to $4.0 million in the second quarter of 2021. Year to date pre-tax and pre-provision earnings through June 30, 2022 increased to $11.1 million, which is $3.9 million higher over the prior year.

• Noninterest-bearing deposits rose 5% during the quarter to $544 million, which is a $28 million increase over the previous quarter and a 63% or $209 million increase from June 30, 2021.
• Net interest income of $7.6 million for the second quarter 2022 represents a 47% increase over the $5 million earned in the second quarter of 2021.
• Tangible book value per share was $12.18 per share as of June 30, 2022 compared to $12.60 per share as of June 30, 2021.
• The Company's impressive efficiency ratio of 36.19% decreased from 42.01% from the first quarter 2022.
• Net interest margin increased to 4.18% as of June 30, 2022 from 3.81% in the first quarter of 2022.
• Asset quality remained strong with a modest level of criticized assets of 2.34% of total assets and nonperforming assets of 0.68% of total assets as of June 30, 2022.

For the three months ended June 30, 2022, the Company reported net income of $5.1 million, or $1.19 per share, compared to net income of $3.2 million, or $0.74 per share, for the three months ended March 31, 2022, and net income of $3.0 million, or $0.71 per share, for the three months ended June 30, 2021.

Michael Quagliano, Executive Chairman of the Board, commented: "The numbers speak for themselves. Over the past quarter, the Bank was able to take advantage of the raising rate environment and we are ready to react to any future gyrations of the market. We have levers at our discretion to weather any storm. I extend a special thank you to the Board of Directors and all of our employees at Solera for their high level of performance."

Jordan Wright, Vice Chairman of the Board, commented: "This quarter's earnings show how Mike Quagliano's leadership of the Bank continues to enable us to punch above our weight class. Under his direction, we've found great ways to grow revenue and perform at the highest levels. And we're just getting started."

Cheri Walz, CFO, commented: "The Bank continued to perform very well in the second quarter of this year and we are extremely pleased and proud to deliver these results to our shareholders. We saw record earnings this quarter which were largely driven by growth and activity in the Bank's investment portfolio. Within the quarter, we saw a 10% growth in net interest margin, a 42% improvement in ROA, and a 69% improvement in ROE. We see these trends continuing as we head into the next six months of the year."

Kreighton Reed, commented: "I'm pleased to announce this next quarter Solera is refreshing its logo and revolutionizing its website. These aesthetic and feature-rich changes better reflect the future direction Solera must march towards to compete in a rapidly tech-advancing bank industry.

Jordan Wright's vision and direction around tech and software enhancements have already benefited our loan and deposit team's efficiency. Solera will see exponential growth through further implementation of software through our own software development team led by Stephen Tippets.

Solera shareholders can continue to bank on Solera's steady 8 years of continuous growth. Solera is perfectly poised to benefit from this rising rate environment thanks to the relentless focus Michael Quagliano has had the past 8 years with his unwavering discipline around efficiency, profitability, and talent acquisition.

I'm immensely happy to be back home at Solera. The freedom to innovate and be part of a bank that is wildly successful was too alluring to stay away from.

About Solera National Bancorp, Inc.

Solera National Bancorp, Inc. was incorporated in 2006 to organize and serve as the holding company for Solera National Bank, which opened for business in September 2007. Solera National Bank is a community bank serving the needs of emerging businesses and real estate investors. At the core of Solera National Bank is welcoming, attentive and respectful customer service, a focus on supporting a growing and diverse economy, and a passion to serve our community through service, education and volunteerism. For more information, please visit http://www.SoleraBank.com.

This press release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this release, which are not historical facts and that relate to future plans or projected results of Solera National Bancorp, Inc. and its wholly-owned subsidiary, Solera National Bank, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

Contacts: Cheri Walz, EVP & CFO (720) 764-9090

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SOURCE: Solera National Bancorp, Inc.